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Invoice Factoring: A History

August 15, 2022
Phil Cohen
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What is Invoice Factoring?

Invoice factoring is the leading method of alternative finance in today’s economy. Factoring helps small businesses like yours get the cash flow that it needs in order to expand and see success. But have you ever wondered where the process came from? If so, wonder no more. Read on (and check out the infographic above) to see a quick history of the invoice factoring process. Learn more about how invoice factoring works.

Ancient Roots

Did you know that invoice factoring can trace its history back to ancient times? It is true! As the infographic above explains, the earliest forms of invoice factoring can be traced back to Ancient Phoenicia. Later, the Roman Empire. Among other functions, factors were used by farmers and merchants in order to maintain a stable cash flow when the seasons made business scarce.

The Age of Discovery

As the world developed, invoice factoring played an integral role in the development and colonization of the so-called “New World.” As the British Empire established vast networks of maritime trading companies, like the East India Company and the Hudson Bay Trading Company, factors were again called upon to help with their business expansion.

The United States and America

The United States owes its history to invoice factoring– in fact, the pilgrims financed The Mayflower and their voyage to Plymouth by using invoice factors in London. And after colonies had been established, factoring remained the most popular method of finance among New World merchants and traders.

Savvy business owners have, quite literally, been using the services of invoice factoring for thousands of years. It is the best, safest way to get the funds you need in order to expand your enterprise. Are you ready to follow the likes of the Phoenicians, Romans, British and Americans? If so, contact Factor Finders and get the process rolling!

What Is The History of Invoice Factoring?

Did You Know?

About the Author

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.

Learn more about Phil Cohen